The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1887-05-26
THE COMMITTEES REPLY.

a settlement as long as the commission
| reject, as it appeared it had. our estimate
of available revenues for the payment of
interest which we held to be $500, 600 ap-
proXimatey.
The commission then submitted Sec
Ond proposition containing certain
items. which they deemed extravaganza,
and without stating the principal. propos-
ed a PAYMENT of 5000, 900 annual interest.
Your committee replied. after noticing
the references made to the eXtravagant
items named by the commission, propos-
ing negotiation npon terms embracing
all the bonds held by the State. which.
with all other outstanding bonds, would
make an annual expenditure for interest
of $725, 900 approximately.
THIRD PROPOSITION SUBMITTED BY THE COMMITS
SION OF THE COUNCIL OF FOREIGN BOND
HOLDERS.
Consols of ISL. $42300 900 100 per CT Si23900o
COUPONS to July -ooooo
/, lSS7............ S3,5o00oo
Less rendered,
say...... 125000
s3.s75,G0
Retire by cash
payment 40 per
cent. looU.uou
To he funded ut
so per cent...... $2,025 900 50 per CT. 100000
Ten-forties of 1873 $4,000 100 per Ct 1890 900
Coupons to July
l. 1857 ............ S855.ooo
saw .....,.......' 5000
100000
Retire by cash
payment 40 per
cent...-......... $4,000
To be funded at
7Oper cent...... 10000 20 per ct. $4,000
Interest on regis
tered consolS 100
and ten-forties. $1,000 20 per ct. 22.4Oo
Total new secur-
ed debt. 800 . iou
II funded in
hands OF public,
say............... S3,0S0,000
Less, held by us.
GOVernment... 5Sl,SG0
sa,49s,2oo spe1 ct. l,z2S,75s
Interest on above s., 26o 0oo
Less interest on
bonds held by
United States. us, 000
&l,5t20O0
OF which, say 80
per cent, at IS o-.,,
Per cent 81, ss7 500 Gs per ct. S7t,Sll
And, say 10 per
cent, at 50 per oo
cent.......... :. 200 50 per ct. 77,lOo
s26,27s,572
Of which it may be anticipated not
more than 80 per cent. Will be fund 90 o,o oo-
ed; deduct, therefore. ...t....-...... SZ,ozo'oo'
S23, GAG. sos
he pubiIc. i..,............~..... 3,2ll,C oJ
s26,ss7 ,9O5
Requiring at per cent, SS16,750.
REPLY OF COMMITTEE TO THIRD PROPO
SITION.
To this proposition, your committee re-
piled that they were willing to contlnueh ne.
gotiations upon a basis of q principal OF
$25, 200, 900, which must include all bonds
held by the State-bonds to run fifty years
at 8 per cent. per annum. redeemable in
ten years at the pleasure of the State.
MEMORANDUM-LAST PROPOSITION.
/. That the interest accruing from july
l, 1887, on the consul bonds be reduced to
per cent. per annum during the whole
period of their currency.
q That the interest accruiDg from July
|. 1887, on the ten-forty bonds, be reduced
to two-and. "a half per cent. per annum dur
ing the whole period of their currency.
3. That the overdue coupons on the
consol and ten-forty bonds up to July l.
1887, inclusive, be discharged as to such
part thereof as the available resources OF
at the rate of so cents on the dollar. and
the remainder to be funded at IS per cent.
of the face value into new secured bonds
bearing per interest during the whole
period of their currency, and to run for q
period to be arranged.
A. That the principal Of the new bonds
and of the c0nsolS and ten-fortles. be re-
deemable at the option of the State either
by purchase or drawings by ballot, and in
the latter case
(a.) AS to the 5 per cent. bonds. by pay
ment OF IS per cent, Of their face value.
o. AS to the q per cent. bonds, by
payment of IS per cent. of their face value.
5. That after the expiration of five
years, an accumulated sinking fund of
per cent. per annum, to be increased after
a further period Of five years, to | per cent.
per annum on the amount of consols, ten
forties, and new bonds to be provided for
redemption by the drawings at IS and 63
per cent. respectively, as above mentioned.
6. That the arrear interest on the. I'M
funded debt from 1885 up to July l, 1887.
inclusive, be funded under the heidelberg
er act at the rate of SO cents on the dollar.
Z. 1t is desirable, as well in the interest
Of the State rs of the bondholders, that the
bonds held by the commissioners Of the
sinking fund and by the Board of Public
Works be cancelled.
S. BY the above proposal, the taX-receiv.
able coupon bondholders would immediate.
ly on redemption (even assuming that the
whole of the overdue coupons were funded
into new bonds ard no part discharged by
cash payment of so cents Oil the dollar).
absolutely surrender the capital sum of
upwards of SIS, 0O0, 900, and pending the re.
demption, would surrender sum of up
wards of $4,000 per annum in Interest.
as compared with the amount now payable
under the terms of the bonds, without
reckoning in any way the increased rates
payable on the ten-forty bonds from Janu-
AIRY |, 1883. The total capital of the whole
debt to be provided ior b the State would
thus be brought to about sS23 000 000 or
So ,0D0, 900 below the limit of $25, 0O0, 600
the joint committee of the 9th Of May, if
the bonds held by the sinking fund and
Board of Public works be cancelled,
The State may, by resestablishing her
credit, confidently look to being able. af-
ter very few years, to raise a new loan.
it desiring to do SO, sufficient to redeem
the 8 per cent, and g per cent. bonds at
the reduced rates, Oh terms which. from
financial point Of view, will give further
benefit to the State.
8. The details for carrying out this az.
rangement, if accepted, will be the subject
OF discussion ana Negotiation with the
Joint committee. with every desire on our
part 70 meet in every possible way the lie
gltlmate requirements OF the State, whilst
conserving the bonaholders' interest.
EDWARD THORNTON,
| S. N. BRAIT1WAITE.
, THE LAST PROPOSITION OF THE COMMISSION TAR
UhNyED FROM THE PROCEEDING MEMORIALS
! DUN.